© Reuters
Investing.com – The had a positive start to the weekend, with a brief foray above the key $40,000 level overnight Friday-Saturday, but failed to hold above that threshold, and then corrected on Sunday evening, reaching a low near $37,000.
The war in Ukraine remains more than ever in the center of the market’s attention, after Putin implied a nuclear threat on Sunday by putting the relevant forces on high alert.
In addition, Russian banks began to be excluded from the SWIFT money transfer network.
For bitcoin proponents, meanwhile, the potential repercussions of Russian financial sanctions and the cryptocurrency’s status as a neutral network for the transfer of value began to take center stage.
Russia Sanctions Make Bitcoin More Useful
“Still processing the implications,” wrote Balaji Srinivasan, former CTO of Coinbase (NASDAQ:), in a conversation on Twitter (NYSE:) about the central bank’s asset freeze, a another recent Western sanction.
“It’s a financial neutron bomb. It bankrupts people without blowing up buildings. It affects all 145 million Russians at the same time, all ruble holders. In a maximalist scenario, possible economic collapse Russian,” he said.
Cutting off Russian banks from the rest of the global economy increases interest in bitcoin, and cryptocurrencies in general, as a way to transfer money easily and quickly, but for now bitcoin seems to be mostly reacting like a a risky asset in the face of the war in Ukraine, although it took relatively less of a beating than equities last week.
Thresholds to watch on Bitcoin today
Finally, from a graphical point of view, we note that Bitcoin is facing support at $37,000, the breakout of which would put the $35,000 zone directly in sight. Further down, the January 24 low around $33,000 would come into play, before the major psychological threshold of $30,000.
On the upside, only a return above $40,000 would allow us to begin to envisage a sustainable rebound in the .
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